The problem is that water does not cook off immediately. Any coolant or water left in the motor will mix with and emulsify with the motor oil and stay there until it's boiled off. The only way to get rid of all of it is with heat.
Once the repair is done (new head gasket, water pump or whatever), the completely drained crankcase should be filled with fresh oil and a new filter installed. The cooling system also needs to be checked for proper level and that no oil made it in there. The engine should be started up (check oil pressure warning light) and allowed to get up to operating temperature by idling. The oil level should be checked a few times during the process. Then a hot oil drain and filter change should be done. Refill with fresh oil and a new filter and then test ride it to see if everything is in working order.
If any milky looking oil is still visible in the site glass, the process has to be repeated.